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- Home365
- Oct.16.2023
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While real estate investing offers the opportunity to build wealth, many individuals don’t have the time or desire to oversee all aspects of managing multiple properties at once. Passive real estate investing provides a way for investors to participate in a real estate venture and build wealth without having to manage all of the day-to-day operations.
What Is Passive Real Estate Investing?
With passive real estate, you’ll make an upfront capital investment, receive an ownership stake and then receive dividends from the investment.
Here are three ways you can passively invest in real estate:
- Real estate investment trusts (REITs): A real estate investment trust, or REIT, is a relatively low-risk way to acquire, maintain and finance real estate. REITs operate as trusts and provide an extremely liquid way to invest in multiple real estate asset types like multifamily and industrial.
- Real estate funds: Compared to REITs, real estate funds are a much broader form of mutual funds and are designed to be more of a long-term investment strategy. The shares are usually highly liquid and the funds can be invested in properties ranging from commercial real estate to public real estate securities.
- Crowdfunding: With crowdfunding, you can start investing with less capital because you’ll be pooling your resources with other investors. This method allows you to diversify your investments and own more properties than you’d be able to on your own.
What Are the Advantages of Passive Real Estate Investing?
No matter what type you decide would work best for you, investing passively means you’ll be able to enjoy the benefits of real estate investing — without the time constraints and stress.
Here are some of the main advantages:
- Stable cash flow: Especially with investments like REITs, you can expect a stable cash flow for many years to come. This form of investing offers regular distributions to investors based on rental income.
- Diversification: Because you’ll be pooling your capital with other investors, there are more opportunities for diversification with passive real estate investing. Along with being able to develop a portfolio with properties across different sectors and geographical locations, you’ll be diversifying your risk.
- Professional property management services: From handling tenant management to maintenance requests, professional property management services provide a way to relieve investors of all the burdensome tasks associated with keeping a property profitable. You’ll be able to focus on your core activities while professional property managers look after your investment.
Why Choose Home365?
At Home365, we are committed to making property management and real estate investing easy. Whether you choose an option like REITs, real estate funds or crowdfunding, you’ll be able to take advantage of our industry expertise and streamlined process.
With our available technology, you’ll be equipped to participate in the real estate market and build wealth — with minimal effort. We provide comprehensive property management solutions like rent collection, tenant screening and 24/7 customer support so you can maximize returns on your real estate investments.
Learn More About How You Can Enhance Your Passive Investing Experience
We encourage you to get a free quote today to learn more about how Home365 can help you achieve your goals and start capitalizing on the benefits of passive real estate investing.
